SILEGX Investment Scam Unravels: Millions Lost in Crypto Fraud

Authorities in Malaysia have launched investigations into the SILEGX investment scam, which has resulted in financial losses amounting to RM41.5 million. A total of 46 investigation papers have been opened, with victims spanning a range of professions, including retirees, businessmen, teachers, engineers, and a doctor. The fraudulent scheme primarily targeted retirees, who accounted for a significant portion of those deceived.

The syndicate behind SILEGX actively promoted the investment scheme on social media platforms, enticing potential investors through advertisements. Those who expressed interest were subsequently added to WhatsApp or Telegram groups, where further details about the investment were provided. The scammers used persuasive tactics, including fabricated testimonials and manipulated account statements, to convince victims of the legitimacy of the scheme. Investigations have revealed that 39 bank accounts were utilised to receive funds from victims, with 37 of them registered under company names and the remaining two under businesses. These accounts have since been frozen as authorities work to identify those responsible.

Among the latest cases reported, three retirees collectively lost RM9.4 million between March 10 and March 17. One of the victims, a 71-year-old former civil servant, first encountered the investment opportunity via a Facebook advertisement. After engaging with the operators, he was included in a WhatsApp group where he was persuaded to invest. Over time, he made 42 transactions amounting to RM5 million across eight bank accounts linked to various companies.

Another victim, a 67-year-old retired teacher, was also drawn into the scheme after seeing promotional material online. She was assured of high returns and was encouraged to reinvest her profits. She transferred RM2.5 million before realising that her attempts to withdraw funds were being delayed with repeated demands for additional fees.

The third victim, a 57-year-old former businessman, lost nearly RM1.9 million after being convinced that the scheme was backed by legitimate cryptocurrency trading. He was given access to a fabricated investment dashboard displaying exponential gains, reinforcing his belief in the system. However, when he attempted to retrieve his earnings, he was met with continuous barriers, including requests for verification fees and alleged tax payments.

In early March, the 71-year-old victim was informed that the platform was experiencing operational difficulties and that investors needed to withdraw their funds immediately to prevent their accounts from being frozen. At this point, his investment account reflected an alleged profit of RM1 billion. However, when he attempted to withdraw the funds, he was informed that a processing fee of RM1.01 million was required. Growing suspicious, he opted to report the matter to the authorities.

The scale of the fraud highlights the effectiveness of the scammers tactics in deceiving investors, particularly retirees seeking financial opportunities. The investigation remains ongoing, with authorities working to track the individuals behind the scheme.